Got the above code working. Setting the width of Rectangle to parent.width made it work. Posting here just in case if some one comes under simliar situation.
Component {
id: mydelegate
Item {
width: 780;
height: 40;
Rectangle {
width: parent.width
height: 40
color: "#FAFAFA"; radius: 5
Text {
text: mytext
}
}
}
}
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